Challenges and Prospects of Credit and Saving Share Companies: the Case of Meta Robi Woreda Credit and Saving Share Company, in West Shoa Zone Oromia Regional State- Ethiopia

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Date

2016-06

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Addis Ababa University

Abstract

Increasing access to micro finance services is accepted as one of the tools to attack poverty. Oromia Credit and Saving Share Company (OCSSCO) is one of the three largest institutions that accounts for 65% of the market share in terms of borrowing clients and 74% by loan provision. While OCSSCO was established in August 1997, Meta Robi Credit and Saving Share Company (MRCSSCO) was established ten years later in August, 4, 2007. This thesis attempts to assess Meta Robi Credit and Saving Share Company challenges it faced and its future potentials in this area. The research methodology was employed for this study Primary; data were collected through questionnaire, interview and focus-group discussion from regular and new clients. Secondary data were collected from different published books, unpublished yearly or quarterly reports journal of articles, academic paper and other relevant official documents and reports has been used to analyze the case study. The results of the study reveal that the MRCSSCO’S micro financing scheme has had a positive impact on improving the coverage/outreach of its clients in the study woreda. Absence of follow up, continuous training, monitoring and supervise the activities of the poor who operating their business in the environments with high business risk in nature. Based on the findings, it has been found out that, MRCSSCO should develop the capacity of its staff, enhance its institutional capability, and must make an effort to strengthen its financial capacity in order to increase its coverage for all kebeles poor households. Key terms: Microfinance institutions, rural and urban households, credit and saving, low income households

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Keywords

Microfinance institutions, Rural and urban households, Credit and saving, Low income households

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